Non-standardized processes are those whose frameworks have no agreement on what parties in an organization or an industry must stick to the process. As such, there is no creation of a good performance of the services offered, nor are there any limiting guidelines. Non-standardized processes result in end products whose quality is poor and inconsistent. Failure in outsourcing is one process that occurs in an organization. It results in the benefits and costs being invisible to the buyers (Davenport, 2005). Furthermore, the organization may face huge losses like in the example of Boeing 787’s numerous problems. By leaving the vendors to their own devices and poor oversight, Boeing experienced numerous problems with its Dreamliner (Gates, 2015). Boeing used to have its in-house experts draw up the specs and monitor its progress, however, they broke the consistency by leaving everything to the vendors. This resulted in them lacking the capacity to deal notice and rectify the problem (Gates, 2015). The second non-standardized process is the lack of a method of evaluating the performance standards of all the people in the organization. For example, at Sun Communities Inc. the scores have no basis and are issued out of fear and laziness (Feintzeig, 2015). Star employees are given high points to keep them happy while others receive average ratings since it is easy. As such, the people involved lack a sense of responsibility because they will receive the same rating regardless.
Why the processes should be standardized
Standardization of the non-standardized processes helps reduce variation. Standardization should be adopted owing to its positive effect on firms, consumers, and technology. Standardization of the processes, outsourcing and performance appraisals, in Boeing and Sun Communities Inc. will see the consistent execution of duties and develop a best practice for the organizations. The non-standardized processes result in company products spanning the whole system because all the individual components are incompatible from different competitors. However, standardization allows for the firms to turn their focus on individual components. Standardization also helps in benefiting the consumers due to the enhanced effects of a network (Lacity, Khan, & Willcocks, 2009). The increased interoperability and compatibility between different products result from an increase in the standards. As a result, information is shared within the limits of a larger network. More customers are attracted. Standardization also reduces uncertainty on the consumers by assuring them that they are choosing the right products and services. From the standardization of the non-standardized process, consumers also benefit from the ability to mix and match the various components in order to align them with their specific preferences. Finally, standardization increases the adoption of new technologies in the market, which is vital because of the incompatible approaches in the market.
Challenges in Implementing Lean Enterprise Improvements
Boeing and Sun Communities Inc. will face different challenges in the implementation of the lean enterprise improvements. First, a lot of the time is spent on the capability and working processes that are needed in the improvement process (Lacity et al., 2009). There is always a need for more time for the problem in the enterprise process to be identified and eliminated. Additionally, more time is further required to introduce all the solutions. Furthermore, the processes which much time has been invested on do not guarantee improved capabilities. It is also a challenge to let go of the group of employees that disagree with the adoption of change and those unwilling to support the implementation of the efforts made. Firm managers also find it hard in the initial stages of implementing the whole process by strict adherence to the stated process and practices in order to avoid the previous stages (Ries, 2011). It is also a challenge for the company leveraging the employees that decide to leave the company and advance to the lean contribution. The skills, experience, and knowledge of the employees are necessary for working throughout the process. However, the resources are difficult to copy as well as scarce throughout the population.
Resolving Resistance to Change
As such, there are some necessary management decisions needed in achieving the required goals; either the owners of the companies need to work hard or work smart. As a result, the management will push the workers to work with a little more effort in order to meet the targets. Working harder is achieved by adding more hours spent during working and often results in high stress and pressure levels. On the other hand, the management can encourage the employees to work smarter in facing the management situation in the organization. Working smarter would require that the employees embrace different new ideas in finding solutions for better work performances (Ries, 2011). The results from good performance often apply to the technique of the employees working harder. The main reason is because working harder helps in reaching the main targets and also motivates the employees and their management who often do not get time to make any improvements. Managers also need to identify their customers, who serve as the source of the problem, and identify their needs. As such, the perception by managers that customers would prefer their products or services depending on the various choices offered to them is valid. In turn, there is a value that is brought to the customer. Boeing and Sun Communities Inc. should also launch surveys that determine the specific services and choices needed by the customers in order to increase the degree of provision efficiency and complexity. Considering complexity as a good thing helps in the management of the disruptions that are possible in technology breakages, supply capacity, and delivery (Ries, 2011). Managers also have a challenge of synchronizing the needs of different individuals, the company, as well as the functions in the value chain of the company such that it achieves all the benefits presented by the lean enterprise. At the same time, the managers must ensure that the well-being of the partner companies, the functional strength, and the individual opportunities are increased. It can only be achieved by the use of innovative techniques.
How management can help organizations facilitate change
Management helps organizations in the facilitation of change through empowerment and getting all the people to be involved in the process. It does so through the dedication of the individuals to specific processes in order to ensure that there is a smooth flowing value chain. The organization should make certain that the workers are all organized in small teams bound together by a particular center of focus that makes sure all the bottlenecks are eliminated. As such, the teams could work in rotations. Employees are also assigned to specific projects of product development that require them to perform under routine tasks. Ultimately, the employees get into a position where they can join other related departments for skill improvement. For any company, the real change is seen when the companies are aware how far they are along the lean journey in terms of task completion, increase of costs affiliated to errors, incorrect forecast and overproduction, excessive or insufficient inventories, as well as suppliers being unable to make rush deliveries (Lacity et al., 2009). It is also important to satisfy the customer preferences through diversification of products. Finally, expanding the product line in the firm ensures that as many people as possible are involved in the process since with every unit added, the more revenues the management of the firm will gain.
References
Davenport, T. H. (2005). The Coming Commoditization of Processes. Harvard Business Review, 83(6), 100-108. Retrieved from http://business.unr.edu/faculty/Kuechler/788/processCommoditization.pdf
Feintzeig, R. (2015, April 21). The Trouble with Grading Employees. The Wall Street Journal. Retrieved from http://www.wsj.com/articles/the-trouble-with-grading-employees-1429624897
Gates, D. (2015, May 1). Boeing 787’s problems blamed on outsourcing, lack of oversight. The Seattle Times. Retrieved from http://www.seattletimes.com/business/boeing-787rsquos-problems-blamed-on-outsourcing-lack-of-oversight/
Lacity, M. C., Khan, S. A., & Willcocks, L. P. (2009). A Review of the IT Outsourcing Literature: Insights for Practice. The Journal of Strategic Information Systems, 18(3), 130-146.
Ries, E. (2011). The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses. New York: Crown Business.
